##### Table of Contents



U.S. SECURITIES AND EXCHANGE COMMISSION
 Washington D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended June 30, 2007
 o
    
    Transition Report Under Section 13 or 15(d) of the Exchange Act
 For the transition period from  to
 Commission File Number 0-22439
 FISHER COMMUNICATIONS, INC.
  WASHINGTON
    
    91-0222175(State or Other Jurisdiction of 
Incorporation or Organization)
    
    (I.R.S. Employer
Identification Number)
 100 Fourth Ave. N., Suite 510
Seattle, Washington 98109
 (206) 404-7000
 þ o
  o þ o
 o þ




---



##### 



PART IFINANCIAL INFORMATIONItem 1.
    
    Financial StatementsThe following Condensed Consolidated Financial Statements (unaudited) are presented for
the Registrant, Fisher Communications, Inc., and its subsidiaries.1.
    
    Condensed Consolidated Statements of Operations:Three and six months ended June 30, 2007 and 20062.
    
    Condensed Consolidated Balance Sheets:June 30, 2007 and December 31, 20063.
    
    Condensed Consolidated Statements of Cash Flows:Six months ended June 30, 2007 and 20064.
    
    Condensed Consolidated Statements of Comprehensive Income:Three and six months ended June 30, 2007 and 20065.
    
    Notes to Condensed Consolidated Financial StatementsItem 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 3.
    
    Quantitative and Qualitative Disclosures about Market RisksItem 4.
    
    Controls and ProceduresPART IIOTHER INFORMATIONItem 1.
    
    Legal ProceedingsItem 1A.
    
    Risk FactorsItem 2.
    
    Unregistered Sales of Equity Securities and Use of ProceedsItem 3.
    
    Defaults upon Senior SecuritiesItem 4.
    
    Submission of Matters to a Vote of Security HoldersItem 5.
    
    Other InformationItem 6.
    
    ExhibitsSIGNATURESEXHIBIT INDEXEXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2
  2




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##### Table of Contents



FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 Six months ended
    
    Three months endedJune 30
    
    June 302007
    
    2006
    
    2007
    
    2006(in thousands, except per-share amounts)(Unaudited)Revenue
    
    $
    75,542
    
    
    $
    71,271
    
    
    $
    41,299
    
    
    $
    40,190Costs and expensesDirect operating costs
(exclusive of depreciation
and amortization
of $4,886, $4,149,
$2,593, and $2,073,
respectively, and
amortization of program
rights of $9,434,
$9,336, $7,011, and
$7,065, respectively,
reported separately
below)
    
    
    28,050
    
    
    
    25,398
    
    
    
    13,775
    
    
    
    12,567Selling, general and
administrative expenses
    
    
    28,233
    
    
    
    26,450
    
    
    
    14,195
    
    
    
    13,110Amortization of program
rights
    
    
    9,434
    
    
    
    9,336
    
    
    
    7,011
    
    
    
    7,065Depreciation and amortization
    
    
    5,857
    
    
    
    5,027
    
    
    
    3,016
    
    
    
    2,51171,574
    
    
    
    66,211
    
    
    
    37,997
    
    
    
    35,253Income from operations
    
    
    3,968
    
    
    
    5,060
    
    
    
    3,302
    
    
    
    4,937Other income, net
    
    
    2,296
    
    
    
    1,767
    
    
    
    1,126
    
    
    
    881Interest expense, net
    
    
    (6,904
    )
    
    
    (6,822
    )
    
    
    (3,410
    )
    
    
    (3,368
    )Income (loss) from continuing
operations before income taxes
    
    
    (640
    )
    
    
    5
    
    
    
    1,018
    
    
    
    2,450Provision (benefit) for federal
and state income taxes
    
    
    (71
    )
    
    
    
    
    
    
    319
    
    
    
    658Income (loss) from continuing
operations
    
    
    (569
    )
    
    
    5
    
    
    
    699
    
    
    
    1,792Income from discontinued
operations, net of income taxes
    
    
    1,580
    
    
    
    562
    
    
    
    1,557
    
    
    
    476Net income
    
    $
    1,011
    
    
    $
    567
    
    
    $
    2,256
    
    
    $
    2,268Income (loss) per share:From continuing operations
    
    $
    (0.06
    )
    
    $
    
    
    
    $
    0.08
    
    
    $
    0.21From discontinued operations
    
    
    0.18
    
    
    
    0.07
    
    
    
    0.18
    
    
    
    0.05Net income per share
    
    $
    0.12
    
    
    $
    0.07
    
    
    $
    0.26
    
    
    $
    0.26Income (loss) per share
assuming dilution:From continuing operations
    
    $
    (0.06
    )
    
    $
    
    
    
    $
    0.08
    
    
    $
    0.21From discontinued operations
    
    
    0.18
    
    
    
    0.07
    
    
    
    0.18
    
    
    
    0.05Net income per share
assuming dilution
    
    $
    0.12
    
    
    $
    0.07
    
    
    $
    0.26
    
    
    $
    0.26Weighted average shares
outstanding
    
    
    8,721
    
    
    
    8,708
    
    
    
    8,722
    
    
    
    8,710Weighted average shares
outstanding assuming dilution
    
    
    8,727
    
    
    
    8,716
    
    
    
    8,729
    
    
    
    8,719
  3




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FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 June 30
    
    December 312007
    
    2006(in thousands, except share and per-share amounts)(Unaudited)ASSETSCurrent AssetsCash and cash equivalents
    
    $
    9,789
    
    
    $
    7,477Restricted cash
    
    
    
    
    
    
    8,473Receivables, net
    
    
    31,846
    
    
    
    30,131Deferred income taxes
    
    
    686
    
    
    
    690Prepaid expenses and other assets
    
    
    4,731
    
    
    
    3,592Television and radio broadcast rights
    
    
    3,231
    
    
    
    6,676Assets held for sale
    
    
    3
    
    
    
    19Total current assets
    
    
    50,286
    
    
    
    57,058Marketable securities, at market value
    
    
    187,510
    
    
    
    188,307Cash value of life insurance and retirement deposits
    
    
    16,355
    
    
    
    15,959Television and radio broadcast rights
    
    
    535
    
    
    
    1,041Goodwill, net
    
    
    36,054
    
    
    
    32,714Intangible assets
    
    
    42,542
    
    
    
    41,142Investment in equity investee
    
    
    2,617
    
    
    
    2,789Deferred financing fees and other assets
    
    
    6,713
    
    
    
    7,748Assets held for sale
    
    
    2,045
    
    
    
    2,612Property, plant and equipment, net
    
    
    147,214
    
    
    
    148,207Total Assets
    
    $
    491,871
    
    
    $
    497,577LIABILITIES AND STOCKHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable
    
    $
    2,753
    
    
    $
    4,600Accrued payroll and related benefits
    
    
    6,062
    
    
    
    7,567Interest payable
    
    
    3,773
    
    
    
    3,809Television and radio broadcast rights payable
    
    
    1,449
    
    
    
    5,667Income taxes payable
    
    
    385
    
    
    
    486Other current liabilities
    
    
    4,576
    
    
    
    3,626Liabilities of businesses held for sale
    
    
    99
    
    
    
    289Total current liabilities
    
    
    19,097
    
    
    
    26,044Long-term debt
    
    
    150,000
    
    
    
    150,000Accrued retirement benefits
    
    
    19,067
    
    
    
    19,027Deferred income taxes
    
    
    54,860
    
    
    
    54,414Other liabilities
    
    
    8,436
    
    
    
    8,527Commitments and ContingenciesStockholders EquityCommon stock, shares authorized 12,000,000, $1.25 par value;
issued and outstanding 8,722,471 as of June 30, 2007 and 8,720,091 as of December 31, 2006
    
    
    10,903
    
    
    
    10,900Capital in excess of par
    
    
    9,807
    
    
    
    9,454Accumulated other comprehensive income, net of income taxes:Unrealized gain on marketable securities
    
    
    120,890
    
    
    
    121,441Accumulated loss
    
    
    (1,721
    )
    
    
    (1,735
    )Prior service cost
    
    
    (196
    )
    
    
    (212
    )Retained earnings
    
    
    100,728
    
    
    
    99,717Total Stockholders Equity
    
    
    240,411
    
    
    
    239,565Total Liabilities and Stockholders Equity
    
    $
    491,871
    
    
    $
    497,577
  4




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##### Table of Contents



FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 Six months endedJune 302007
    
    2006(in thousands)(Unaudited)Cash flows from operating activitiesNet income
    
    $
    1,011
    
    
    $
    567Adjustments to reconcile net income to net cash provided by
operating activitiesDepreciation and amortization
    
    
    5,857
    
    
    
    5,155Deferred income taxes
    
    
    (56
    )
    
    
    295Dividends from equity investee
    
    
    150Amortization of deferred financing fees
    
    
    316
    
    
    
    316Amortization of program rights
    
    
    9,434
    
    
    
    9,336Payments for television and radio broadcast rights
    
    
    (9,704
    )
    
    
    (9,494
    )Gain on sale of radio station
    
    
    (1,491
    )Equity in operations of equity investees
    
    
    22
    
    
    
    8Stock-based compensation
    
    
    328
    
    
    
    287Other
    
    
    91
    
    
    
    40Change in operating assets and liabilitiesReceivables
    
    
    (1,584
    )
    
    
    (3,167
    )Prepaid expenses and other current assets
    
    
    (1,123
    )
    
    
    (944
    )Cash value of life insurance and retirement deposits
    
    
    (396
    )
    
    
    (292
    )Other assets
    
    
    619
    
    
    
    (275
    )Trade accounts payable, accrued payroll and related benefits, interest
payable, and other current liabilities
    
    
    (2,643
    )
    
    
    (665
    )Income taxes receivable and payable
    
    
    (101
    )Accrued retirement benefits
    
    
    40
    
    
    
    80Other liabilities
    
    
    (88
    )
    
    
    1,860Net cash provided by operating activities
    
    
    682
    
    
    
    3,107Cash flows from investing activitiesPurchases of investments available-for-sale
    
    
    (177
    )Proceeds from sale of radio station
    
    
    2,869Purchase of television stations
    
    
    (4,931
    )Investment in equity investee
    
    
    
    
    
    
    (4,000
    )Deposit paid for purchase of Oregon television stations
    
    
    
    
    
    
    (3,500
    )Decrease in restricted cash
    
    
    8,473Purchase of property, plant and equipment
    
    
    (4,638
    )
    
    
    (6,903
    )Net cash provided by (used in) investing activities
    
    
    1,596
    
    
    
    (14,403
    )Cash flows from financing activitiesBorrowings under borrowing agreements
    
    
    6,000Payments on borrowing agreements
    
    
    (6,000
    )Proceeds from exercise of stock options
    
    
    34
    
    
    
    177Excess tax benefit from exercise of stock options
    
    
    
    
    
    
    10Net cash provided by financing activities
    
    
    34
    
    
    
    187Net increase (decrease) in cash and cash equivalents
    
    
    2,312
    
    
    
    (11,109
    )Cash and cash equivalents, beginning of period
    
    
    7,477
    
    
    
    19,622Cash and cash equivalents, end of period
    
    $
    9,789
    
    
    $
    8,513
  5




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FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 Six months ended
    
    Three months endedJune 30
    
    June 302007
    
    2006
    
    2007
    
    2006(in thousands)(Unaudited)Net income
    
    $
    1,011
    
    
    $
    567
    
    
    $
    2,256
    
    
    $
    2,268Other comprehensive income (loss):Unrealized gain (loss) on marketable securities
    
    
    (840
    )
    
    
    (423
    )
    
    
    (12,498
    )
    
    
    18,429Effect of income taxes
    
    
    294
    
    
    
    148
    
    
    
    4,374
    
    
    
    (6,450
    )Accumulated loss
    
    
    21
    
    
    
    
    
    
    
    21Effect of income taxes
    
    
    (7
    )
    
    
    
    
    
    
    (7
    )Prior service cost
    
    
    24
    
    
    
    
    
    
    
    24Effect of income taxes
    
    
    (8
    )
    
    
    
    
    
    
    (8
    )Reclassification adjustment for gains included in net income
    
    
    (8
    )
    
    
    
    
    
    
    (8
    )Effect of income taxes
    
    
    3
    
    
    
    
    
    
    
    3Other comprehensive income (loss)
    
    
    (521
    )
    
    
    (275
    )
    
    
    (8,099
    )
    
    
    11,979Comprehensive income (loss)
    
    $
    490
    
    
    $
    292
    
    
    $
    (5,843
    )
    
    $
    14,247
  6




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##### Table of Contents



Reclassifications
  
    
    Direct operating costs has replaced the caption previously labeled Cost of services
sold;
    
    Amortization of program rights are now reported separately, whereas previously these
amounts were reported within Cost of services sold; and
    
    Selling, general and administrative expenses now include amounts previously reported
separately under the captions Selling expenses and General and administrative
expenses.
   Income taxes
 Accounting for Uncertainty in Income Taxes  an
interpretation of FASB Statement No. 109
 7




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##### Table of Contents



The Fair
Value Option for Financial Assets and Financial Liabilities  Including an amendment to FASB
Statement No. 115
 Fair Value Measurements
     Accounting for the Impairment or Disposal of Long-Lived Assets
 8




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##### Table of Contents



Six months ended
    
    
    Three months endedJune 30
    
    
    June 302007
    
    
    2006
    
    
    2007
    
    
    2006Revenue
    
    $
    977
    
    
    $
    6,049
    
    
    $
    533
    
    
    $
    3,302Income from discontinued operations:Discontinued operating activities
    
    $
    137
    
    
    $
    868
    
    
    $
    102
    
    
    $
    734Gain on sale
    
    
    2,294
    
    
    
    
    
    
    
    2,2942,431
    
    
    
    868
    
    
    
    2,396
    
    
    
    734Income tax effect
    
    
    (851
    )
    
    
    (306
    )
    
    
    (839
    )
    
    
    (258
    )$
    1,580
    
    
    $
    562
    
    
    $
    1,557
    
    
    $
    476
  June 30
    
    
    December 312007
    
    
    2006Goodwill, net
    
    $
    645
    
    
    $
    1,129Property, plant and equipment, net
    
    
    635
    
    
    
    718Intangible assets
    
    
    765
    
    
    
    765Other assets
    
    
    3
    
    
    
    19$
    2,048
    
    
    $
    2,631Liabilities of businesses held for sale
    
    $
    99
    
    
    $
    289
      9




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##### Table of Contents



Six months ended
    
    
    Three months endedJune 30
    
    
    June 302007
    
    
    2006
    
    
    2007
    
    
    2006Interest cost
    
    $
    532
    
    
    $
    520
    
    
    $
    266
    
    
    $
    260Amortization of loss
    
    
    22
    
    
    
    77
    
    
    
    11
    
    
    
    39Net periodic pension cost
    
    $
    554
    
    
    $
    597
    
    
    $
    277
    
    
    $
    299
     Six months
    
    
    Three monthsended June 30
    
    
    ended June 302007
    
    
    2006
    
    
    2007
    
    
    2006Income (loss) from continuing operations
    
    $
    (569
    )
    
    $
    5
    
    
    $
    699
    
    
    $
    1,792Income from discontinued operations, net of income taxes
    
    
    1,580
    
    
    
    562
    
    
    
    1,557
    
    
    
    476Net income
    
    $
    1,011
    
    
    $
    567
    
    
    $
    2,256
    
    
    $
    2,268Weighted average shares outstanding  basic
    
    
    8,721
    
    
    
    8,708
    
    
    
    8,722
    
    
    
    8,710Weighted effect of dilutive options and rights
    
    
    6
    
    
    
    8
    
    
    
    7
    
    
    
    9Weighted average shares outstanding assuming dilution
    
    
    8,727
    
    
    
    8,716
    
    
    
    8,729
    
    
    
    8,719Income (loss) per share:From continuing operations
    
    $
    (0.06
    )
    
    $
    
    
    
    $
    0.08
    
    
    $
    0.21From discontinued operations
    
    
    0.18
    
    
    
    0.07
    
    
    
    0.18
    
    
    
    0.05Net income per share
    
    $
    0.12
    
    
    $
    0.07
    
    
    $
    0.26
    
    
    $
    0.26Income (loss) per share assuming dilution:From continuing operations
    
    $
    (0.06
    )
    
    $
    
    
    
    $
    0.08
    
    
    $
    0.21From discontinued operations
    
    
    0.18
    
    
    
    0.07
    
    
    
    0.18
    
    
    
    0.05Net income per share assuming dilution
    
    $
    0.12
    
    
    $
    0.07
    
    
    $
    0.26
    
    
    $
    0.26
  10




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##### Table of Contents



Six months
    
    Three monthsended June 30
    
    ended June 302007
    
    2006
    
    2007
    
    2006Stock-based compensation expense
    
    $
    328,000
    
    
    $
    287,000
    
    
    $
    181,000
    
    
    $
    144,000
       11




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##### Table of Contents



Six months
    
    
    Three monthsended June 30
    
    
    ended June 302007
    
    
    2006
    
    
    2007
    
    
    2006Television
    
    $
    51,578
    
    
    $
    48,850
    
    
    $
    26,980
    
    
    $
    25,991Radio
    
    
    18,351
    
    
    
    18,172
    
    
    
    11,443
    
    
    
    12,081Fisher Plaza
    
    
    5,689
    
    
    
    4,292
    
    
    
    2,914
    
    
    
    2,128Corporate and eliminations
    
    
    (76
    )
    
    
    (43
    )
    
    
    (38
    )
    
    
    (10
    )$
    75,542
    
    
    $
    71,271
    
    
    $
    41,299
    
    
    $
    40,190
   Six months
    
    
    Three monthsended June 30
    
    
    ended June 302007
    
    
    2006
    
    
    2007
    
    
    2006Television
    
    $
    6,417
    
    
    $
    8,684
    
    
    $
    4,498
    
    
    $
    6,085Radio
    
    
    (42
    )
    
    
    (207
    )
    
    
    (343
    )
    
    
    183Fisher Plaza
    
    
    2,196
    
    
    
    1,089
    
    
    
    1,272
    
    
    
    579Corporate and eliminations
    
    
    (2,307
    )
    
    
    (2,739
    )
    
    
    (999
    )
    
    
    (1,029
    )$
    6,264
    
    
    $
    6,827
    
    
    $
    4,428
    
    
    $
    5,818
  Six months
    
    
    Three monthsended June 30
    
    
    ended June 302007
    
    
    2006
    
    
    2007
    
    
    2006Total segment income from continuing
operations before interest and income taxes
    
    $
    6,264
    
    
    $
    6,827
    
    
    $
    4,428
    
    
    $
    5,818Interest expense
    
    
    (6,904
    )
    
    
    (6,822
    )
    
    
    (3,410
    )
    
    
    (3,368
    )Consolidated income (loss) from continuing
operations before income taxes
    
    $
    (640
    )
    
    $
    5
    
    
    $
    1,018
    
    
    $
    2,450
 12




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##### Table of Contents



December 31Total assets
    
    June 30 2007
    
    
    2006Television
    
    $
    127,610
    
    
    $
    130,994Radio
    
    
    23,122
    
    
    
    24,436Fisher Plaza
    
    
    119,369
    
    
    
    119,872Corporate and eliminations
    
    
    219,722
    
    
    
    219,644489,823
    
    
    
    494,946Assets held for sale
    
    
    2,048
    
    
    
    2,631$
    491,871
    
    
    $
    497,577
       13




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##### Table of Contents



Financial Information for Guarantors
Condensed Consolidated Statement of Operations
for the six months ended June 30, 2007
 100%
    
    
    
    
    
    FisherFisher
    
    Owned
    
    
    
    
    
    Communications,Communications,
    
    Guarantor
    
    
    
    
    
    Inc. andInc.
    
    Subsidiaries
    
    Eliminations
    
    Subsidiaries(in thousands)Revenue
    
    $
    
    
    
    $
    75,618
    
    
    $
    (76
    )
    
    $
    75,542Costs and expensesDirect operating costs
    
    
    
    
    
    
    27,119
    
    
    
    931
    
    
    
    28,050Selling, general and administrative expenses
    
    
    4,247
    
    
    
    24,993
    
    
    
    (1,007
    )
    
    
    28,233Amortization of program rights
    
    
    
    
    
    
    9,434
    
    
    
    
    
    
    
    9,434Depreciation and amortization
    
    
    146
    
    
    
    5,711
    
    
    
    
    
    
    
    5,8574,393
    
    
    
    67,257
    
    
    
    (76
    )
    
    
    71,574Income (loss) from operations
    
    
    (4,393
    )
    
    
    8,361
    
    
    
    
    
    
    
    3,968Other income, net
    
    
    2,069
    
    
    
    227
    
    
    
    
    
    
    
    2,296Equity in income of subsidiaries
    
    
    6,955
    
    
    
    
    
    
    
    (6,955
    )
    
    
    Interest expense, net
    
    
    (6,904
    )
    
    
    
    
    
    
    
    
    
    
    (6,904
    )Income (loss) from continuing operations before income taxes
    
    
    (2,273
    )
    
    
    8,588
    
    
    
    (6,955
    )
    
    
    (640
    )Provision (benefit) for federal and state income taxes
    
    
    (3,284
    )
    
    
    3,213
    
    
    
    
    
    
    
    (71
    )Income (loss) from continuing operations
    
    
    1,011
    
    
    
    5,375
    
    
    
    (6,955
    )
    
    
    (569
    )Income from discontinued operations, net of income taxes
    
    
    
    
    
    
    1,580
    
    
    
    
    
    
    
    1,580Net income (loss)
    
    $
    1,011
    
    
    $
    6,955
    
    
    $
    (6,955
    )
    
    $
    1,011
 14




---



##### Table of Contents



Financial Information for Guarantors
Condensed Consolidated Statement of Operations
for the six months ended June 30, 2006
 100%
    
    
    
    
    
    FisherFisher
    
    Owned
    
    
    
    
    
    Communications,Communications,
    
    Guarantor
    
    
    
    
    
    Inc. andInc.
    
    Subsidiaries
    
    Eliminations
    
    Subsidiaries(in thousands)Revenue
    
    $
    
    
    
    $
    71,375
    
    
    $
    (104
    )
    
    $
    71,271Costs and expensesDirect operating costs
    
    
    
    
    
    
    24,587
    
    
    
    811
    
    
    
    25,398Selling, general and administrative expenses
    
    
    4,223
    
    
    
    23,142
    
    
    
    (915
    )
    
    
    26,450Amortization of program rights
    
    
    
    
    
    
    9,336
    
    
    
    
    
    
    
    9,336Depreciation and amortization
    
    
    124
    
    
    
    4,903
    
    
    
    
    
    
    
    5,0274,347
    
    
    
    61,968
    
    
    
    (104
    )
    
    
    66,211Income (loss) from operations
    
    
    (4,347
    )
    
    
    9,407
    
    
    
    
    
    
    
    5,060Other income, net
    
    
    1,576
    
    
    
    191
    
    
    
    
    
    
    
    1,767Equity in income of subsidiaries
    
    
    6,664
    
    
    
    
    
    
    
    (6,664
    )Interest expense, net
    
    
    (6,817
    )
    
    
    (5
    )
    
    
    
    
    
    
    (6,822
    )Income (loss) from continuing operations before income taxes
    
    
    (2,924
    )
    
    
    9,593
    
    
    
    (6,664
    )
    
    
    5Provision (benefit) for federal and state income taxes
    
    
    (3,491
    )
    
    
    3,491Income (loss) from continuing operations
    
    
    567
    
    
    
    6,102
    
    
    
    (6,664
    )
    
    
    5Income from discontinued operations, net of income taxes
    
    
    
    
    
    
    562
    
    
    
    
    
    
    
    562Net income (loss)
    
    $
    567
    
    
    $
    6,664
    
    
    $
    (6,664
    )
    
    $
    567
 15




---



##### Table of Contents



Financial Information for Guarantors
Condensed Consolidated Statement of Operations
for the three months ended June 30, 2007
 100%
    
    
    
    
    
    FisherFisher
    
    Owned
    
    
    
    
    
    Communications,Communications,
    
    Guarantor
    
    
    
    
    
    Inc. andInc.
    
    Subsidiaries
    
    Eliminations
    
    Subsidiaries(in thousands)Revenue
    
    $
    
    
    
    $
    41,337
    
    
    $
    (38
    )
    
    $
    41,299Costs and expensesDirect operating costs
    
    
    
    
    
    
    13,310
    
    
    
    465
    
    
    
    13,775Selling, general and administrative costs
    
    
    2,018
    
    
    
    12,680
    
    
    
    (503
    )
    
    
    14,195Amortization of program rights
    
    
    
    
    
    
    7,011
    
    
    
    
    
    
    
    7,011Depreciation and amortization
    
    
    74
    
    
    
    2,942
    
    
    
    
    
    
    
    3,0162,092
    
    
    
    35,943
    
    
    
    (38
    )
    
    
    37,997Income (loss) from operations
    
    
    (2,092
    )
    
    
    5,394
    
    
    
    
    
    
    
    3,302Other income, net
    
    
    1,089
    
    
    
    37
    
    
    
    
    
    
    
    1,126Equity in income of subsidiaries
    
    
    4,911
    
    
    
    
    
    
    
    (4,911
    )
    
    
    Interest expense, net
    
    
    (3,410
    )
    
    
    
    
    
    
    
    
    
    
    (3,410
    )Income (loss) from continuing operations before income taxes
    
    
    498
    
    
    
    5,431
    
    
    
    (4,911
    )
    
    
    1,018Provision (benefit) for federal and state income taxes
    
    
    (1,758
    )
    
    
    2,077
    
    
    
    
    
    
    
    319Income (loss) from continuing operations
    
    
    2,256
    
    
    
    3,354
    
    
    
    (4,911
    )
    
    
    699Income from discontinued operations, net of income taxes
    
    
    
    
    
    
    1,557
    
    
    
    
    
    
    
    1,557Net income (loss)
    
    $
    2,256
    
    
    $
    4,911
    
    
    $
    (4,911
    )
    
    $
    2,256
 16




---



##### Table of Contents



Financial Information for Guarantors
Condensed Consolidated Statement of Operations
for the three months ended June 30, 2006
 100%
    
    
    
    
    
    FisherFisher
    
    Owned
    
    
    
    
    
    Communications,Communications,
    
    Guarantor
    
    
    
    
    
    Inc. andInc.
    
    Subsidiaries
    
    Eliminations
    
    Subsidiaries(in thousands)Revenue
    
    $
    
    
    
    $
    40,242
    
    
    $
    (52
    )
    
    $
    40,190Costs and expensesDirect operating costs
    
    
    
    
    
    
    12,167
    
    
    
    400
    
    
    
    12,567Selling, general and administrative expenses
    
    
    1,782
    
    
    
    11,780
    
    
    
    (452
    )
    
    
    13,110Amortization of program rights
    
    
    
    
    
    
    7,065
    
    
    
    
    
    
    
    7,065Depreciation and amortization
    
    
    62
    
    
    
    2,449
    
    
    
    
    
    
    
    2,5111,844
    
    
    
    33,461
    
    
    
    (52
    )
    
    
    35,253Income (loss) from operations
    
    
    (1,844
    )
    
    
    6,781
    
    
    
    
    
    
    
    4,937Other income, net
    
    
    789
    
    
    
    92
    
    
    
    
    
    
    
    881Equity in income of subsidiaries
    
    
    4,846
    
    
    
    
    
    
    
    (4,846
    )Interest expense, net
    
    
    (3,366
    )
    
    
    (2
    )
    
    
    
    
    
    
    (3,368
    )Income (loss) from continuing operations before income taxes
    
    
    425
    
    
    
    6,871
    
    
    
    (4,846
    )
    
    
    2,450Provision (benefit) for federal and state income taxes
    
    
    (1,843
    )
    
    
    2,501
    
    
    
    
    
    
    
    658Income (loss) from continuing operations
    
    
    2,268
    
    
    
    4,370
    
    
    
    (4,846
    )
    
    
    1,792Income from discontinued operations, net of income taxes
    
    
    
    
    
    
    476
    
    
    
    
    
    
    
    476Net income (loss)
    
    $
    2,268
    
    
    $
    4,846
    
    
    $
    (4,846
    )
    
    $
    2,268
 17




---



##### Table of Contents



Financial Information for Guarantors
Condensed Consolidated Balance Sheet
as of June 30, 2007
 100%
    
    
    
    
    
    FisherFisher
    
    Owned
    
    
    
    
    
    Communications,Communications,
    
    Guarantor
    
    
    
    
    
    Inc. andInc.
    
    Subsidiaries
    
    Eliminations
    
    Subsidiaries(in thousands)ASSETSCurrent AssetsCash and cash equivalents
    
    $
    9,489
    
    
    $
    300
    
    
    $
    
    
    
    $
    9,789Receivables, net
    
    
    875
    
    
    
    30,971
    
    
    
    
    
    
    
    31,846Due from affiliate
    
    
    
    
    
    
    28,253
    
    
    
    (28,253
    )
    
    
    Deferred income taxes
    
    
    106
    
    
    
    580
    
    
    
    
    
    
    
    686Prepaid expenses and other assets
    
    
    352
    
    
    
    4,379
    
    
    
    
    
    
    
    4,731Television and radio broadcast rights
    
    
    
    
    
    
    3,231
    
    
    
    
    
    
    
    3,231Assets held for sale
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    3Total current assets
    
    
    10,822
    
    
    
    67,717
    
    
    
    (28,253
    )
    
    
    50,286Marketable securities, at market value
    
    
    186,977
    
    
    
    533
    
    
    
    
    
    
    
    187,510Investment in consolidated subsidiaries
    
    
    260,589
    
    
    
    
    
    
    
    (260,589
    )
    
    
    Cash value of life insurance and retirement deposit
    
    
    16,355
    
    
    
    
    
    
    
    
    
    
    
    16,355Television and radio broadcast rights
    
    
    
    
    
    
    535
    
    
    
    
    
    
    
    535Goodwill, net
    
    
    
    
    
    
    36,054
    
    
    
    
    
    
    
    36,054Intangible assets
    
    
    
    
    
    
    42,542
    
    
    
    
    
    
    
    42,542Investment in equity investee
    
    
    
    
    
    
    2,617
    
    
    
    
    
    
    
    2,617Deferred financing fees and other assets
    
    
    4,235
    
    
    
    2,478
    
    
    
    
    
    
    
    6,713Assets held for sale
    
    
    
    
    
    
    2,045
    
    
    
    
    
    
    
    2,045Property, plant and equipment, net
    
    
    714
    
    
    
    146,500
    
    
    
    
    
    
    
    147,214Total Assets
    
    $
    479,692
    
    
    $
    301,021
    
    
    $
    (288,842
    )
    
    $
    491,871LIABILITIES AND STOCKHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable
    
    $
    955
    
    
    $
    1,798
    
    
    $
    
    
    
    $
    2,753Payable to affiliate
    
    
    28,253
    
    
    
    
    
    
    
    (28,253
    )
    
    
    Accrued payroll and related benefits
    
    
    867
    
    
    
    5,195
    
    
    
    
    
    
    
    6,062Interest payable
    
    
    3,773
    
    
    
    
    
    
    
    
    
    
    
    3,773Television and radio broadcast rights payable
    
    
    
    
    
    
    1,449
    
    
    
    
    
    
    
    1,449Income taxes payable
    
    
    
    
    
    
    385
    
    
    
    
    
    
    
    385Other current liabilities
    
    
    1,399
    
    
    
    3,177
    
    
    
    
    
    
    
    4,576Liabilities of businesses held for sale
    
    
    
    
    
    
    99
    
    
    
    
    
    
    
    99Total current liabilities
    
    
    35,247
    
    
    
    12,103
    
    
    
    (28,253
    )
    
    
    19,097Long-term debt
    
    
    150,000
    
    
    
    
    
    
    
    
    
    
    
    150,000Accrued retirement benefits
    
    
    18,983
    
    
    
    84
    
    
    
    
    
    
    
    19,067Deferred income taxes
    
    
    34,986
    
    
    
    19,874
    
    
    
    
    
    
    
    54,860Other liabilities
    
    
    65
    
    
    
    8,371
    
    
    
    
    
    
    
    8,436Stockholders EquityCommon stock
    
    
    10,903
    
    
    
    1,131
    
    
    
    (1,131
    )
    
    
    10,903Capital in excess of par
    
    
    9,807
    
    
    
    164,234
    
    
    
    (164,234
    )
    
    
    9,807Accumulated other comprehensive income, net of income taxes:Unrealized gain on marketable securities
    
    
    120,890
    
    
    
    
    
    
    
    
    
    
    
    120,890Accumulated loss
    
    
    (1,721
    )
    
    
    
    
    
    
    
    
    
    
    (1,721
    )Prior service cost
    
    
    (196
    )
    
    
    
    
    
    
    
    
    
    
    (196
    )Retained earnings
    
    
    100,728
    
    
    
    95,224
    
    
    
    (95,224
    )
    
    
    100,728Total Stockholders Equity
    
    
    240,411
    
    
    
    260,589
    
    
    
    (260,589
    )
    
    
    240,411Total Liabilities and Stockholders Equity
    
    $
    479,692
    
    
    $
    301,021
    
    
    $
    (288,842
    )
    
    $
    491,871
 18




---



##### Table of Contents



Financial Information for Guarantors
Condensed Consolidated Balance Sheet
as of December 31, 2006
 100%
    
    
    
    
    
    FisherFisher
    
    Owned
    
    
    
    
    
    Communications,Communications,
    
    Guarantor
    
    
    
    
    
    Inc. andInc.
    
    Subsidiaries
    
    Eliminations
    
    Subsidiaries(in thousands)ASSETSCurrent AssetsCash and cash equivalents
    
    $
    8,544
    
    
    
    
    
    
    $
    (1,067
    )
    
    $
    7,477Restricted cash
    
    
    
    
    
    
    8,473
    
    
    
    
    
    
    
    8,473Receivables, net
    
    
    768
    
    
    
    29,363
    
    
    
    
    
    
    
    30,131Due from affiliate
    
    
    
    
    
    
    17,357
    
    
    
    (17,357
    )Deferred income taxes
    
    
    106
    
    
    
    584
    
    
    
    
    
    
    
    690Prepaid expenses and other assets
    
    
    438
    
    
    
    3,154
    
    
    
    
    
    
    
    3,592Television and radio broadcast rights
    
    
    
    
    
    
    6,676
    
    
    
    
    
    
    
    6,676Assets held for sale
    
    
    
    
    
    
    19
    
    
    
    
    
    
    
    19Total current assets
    
    
    9,856
    
    
    
    65,626
    
    
    
    (18,424
    )
    
    
    57,058Marketable securities, at market value
    
    
    187,833
    
    
    
    474
    
    
    
    
    
    
    
    188,307Investment in consolidated subsidiaries
    
    
    253,632
    
    
    
    
    
    
    
    (253,632
    )Cash value of life insurance and retirement deposits
    
    
    15,959
    
    
    
    
    
    
    
    
    
    
    
    15,959Television and radio broadcast rights
    
    
    
    
    
    
    1,041
    
    
    
    
    
    
    
    1,041Goodwill, net
    
    
    
    
    
    
    32,714
    
    
    
    
    
    
    
    32,714Intangible assets
    
    
    
    
    
    
    41,142
    
    
    
    
    
    
    
    41,142Investment in equity investee
    
    
    
    
    
    
    2,789
    
    
    
    
    
    
    
    2,789Deferred financing fees and other assets
    
    
    4,538
    
    
    
    3,210
    
    
    
    
    
    
    
    7,748Assets held for sale
    
    
    
    
    
    
    2,612
    
    
    
    
    
    
    
    2,612Property, plant and equipment, net
    
    
    813
    
    
    
    147,394
    
    
    
    
    
    
    
    148,207Total Assets
    
    $
    472,631
    
    
    $
    297,002
    
    
    $
    (272,056
    )
    
    $
    497,577LIABILITIES AND STOCKHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable
    
    $
    1,543
    
    
    $
    4,124
    
    
    $
    (1,067
    )
    
    $
    4,600Due to affiliate
    
    
    17,357
    
    
    
    
    
    
    
    (17,357
    )Accrued payroll and related benefits
    
    
    1,841
    
    
    
    5,726
    
    
    
    
    
    
    
    7,567Interest payable
    
    
    3,809
    
    
    
    
    
    
    
    
    
    
    
    3,809Television and radio broadcast rights payable
    
    
    
    
    
    
    5,667
    
    
    
    
    
    
    
    5,667Income taxes payable
    
    
    
    
    
    
    486
    
    
    
    
    
    
    
    486Other current liabilities
    
    
    950
    
    
    
    2,676
    
    
    
    
    
    
    
    3,626Liabilities of businesses held for sale
    
    
    
    
    
    
    289
    
    
    
    
    
    
    
    289Total current liabilities
    
    
    25,500
    
    
    
    18,968
    
    
    
    (18,424
    )
    
    
    26,044Long-term debt
    
    
    150,000
    
    
    
    
    
    
    
    
    
    
    
    150,000Accrued retirement benefits
    
    
    18,942
    
    
    
    85
    
    
    
    
    
    
    
    19,027Deferred income taxes
    
    
    38,559
    
    
    
    15,855
    
    
    
    
    
    
    
    54,414Other liabilities
    
    
    65
    
    
    
    8,462
    
    
    
    
    
    
    
    8,527Stockholders EquityCommon stock
    
    
    10,900
    
    
    
    1,131
    
    
    
    (1,131
    )
    
    
    10,900Capital in excess of par
    
    
    9,454
    
    
    
    164,234
    
    
    
    (164,234
    )
    
    
    9,454Accumulated other comprehensive income  net of income taxes:Unrealized gain on marketable securities
    
    
    121,441
    
    
    
    
    
    
    
    
    
    
    
    121,441Accumulated loss
    
    
    (1,735
    )
    
    
    
    
    
    
    
    
    
    
    (1,735
    )Prior service cost
    
    
    (212
    )
    
    
    
    
    
    
    
    
    
    
    (212
    )Retained earnings
    
    
    99,717
    
    
    
    88,267
    
    
    
    (88,267
    )
    
    
    99,717Total Stockholders Equity
    
    
    239,565
    
    
    
    253,632
    
    
    
    (253,632
    )
    
    
    239,565Total Liabilities and Stockholders Equity
    
    $
    472,631
    
    
    $
    297,002
    
    
    $
    (272,056
    )
    
    $
    497,577
 19




---



##### Table of Contents



Financial Information for Guarantors
Condensed Consolidated Statement of Cash Flows
for the six months ended June 30, 2007
 100%
    
    
    
    
    
    FisherFisher
    
    Owned
    
    
    
    
    
    Communications,Communications,
    
    Guarantor
    
    
    
    
    
    Inc. andInc.
    
    Subsidiaries
    
    Eliminations
    
    Subsidiaries(in thousands)Net cash provided by (used in) operating activities
    
    $
    958
    
    
    $
    (1,343
    )
    
    $
    1,067
    
    
    $
    682Cash flows from investing activitiesProceeds from sale of radio station
    
    
    
    
    
    
    2,869
    
    
    
    
    
    
    
    2,869Purchase of television stations
    
    
    
    
    
    
    (4,931
    )
    
    
    
    
    
    
    (4,931
    )Decrease in restricted cash
    
    
    
    
    
    
    8,473
    
    
    
    
    
    
    
    8,473Purchases of investments available-for-sale
    
    
    
    
    
    
    (177
    )
    
    
    
    
    
    
    (177
    )Purchase of property, plant and equipment
    
    
    (47
    )
    
    
    (4,591
    )
    
    
    
    
    
    
    (4,638
    )Net cash provided by (used in) investing activities
    
    
    (47
    )
    
    
    1,643
    
    
    
    
    
    
    
    1,596Cash flows from financing activitiesBorrowings under borrowing agreements
    
    
    6,000
    
    
    
    
    
    
    
    
    
    
    
    6,000Payments on borrowing agreements
    
    
    (6,000
    )
    
    
    
    
    
    
    
    
    
    
    (6,000
    )Proceeds from exercise of stock options
    
    
    34
    
    
    
    
    
    
    
    
    
    
    
    34Net cash provided by financing activities
    
    
    34
    
    
    
    
    
    
    
    
    
    
    
    34Net increase in cash and cash equivalents
    
    
    945
    
    
    
    300
    
    
    
    1,067
    
    
    
    2,312Cash and cash equivalents, beginning of period
    
    
    8,544
    
    
    
    
    
    
    
    (1,067
    )
    
    
    7,477Cash and cash equivalents, end of period
    
    $
    9,489
    
    
    $
    300
    
    
    $
    
    
    
    $
    9,789
 20




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##### Table of Contents



Financial Information for Guarantors
Condensed Consolidated Statement of Cash Flows
for the six months ended June 30, 2006
 100%
    
    
    
    
    
    FisherFisher
    
    Owned
    
    
    
    
    
    Communications,Communications,
    
    Guarantor
    
    
    
    
    
    Inc. andInc.
    
    Subsidiaries
    
    Eliminations
    
    Subsidiaries(in thousands)Net cash provided by operating activities
    
    $
    1,420
    
    
    $
    1,687
    
    
    $
    
    
    
    $
    3,107Cash flows from investing activitiesInvestment in equity investee
    
    
    
    
    
    
    (4,000
    )
    
    
    
    
    
    
    (4,000
    )Deposit paid for purchase of Oregon television stations
    
    
    
    
    
    
    (3,500
    )
    
    
    
    
    
    
    (3,500
    )Purchase of property, plant and equipment
    
    
    (26
    )
    
    
    (6,877
    )
    
    
    
    
    
    
    (6,903
    )Net cash used in investing activities
    
    
    (26
    )
    
    
    (14,377
    )
    
    
    
    
    
    
    (14,403
    )Cash flows from financing activitiesExcess tax benefit from exercise of stock options
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    10Proceeds from exercise of stock options
    
    
    177
    
    
    
    
    
    
    
    
    
    
    
    177Net cash provided by financing activities
    
    
    187
    
    
    
    
    
    
    
    
    
    
    
    187Net increase (decrease) in cash and cash equivalents
    
    
    1,581
    
    
    
    (12,690
    )
    
    
    
    
    
    
    (11,109
    )Cash and cash equivalents, beginning of period
    
    
    3,660
    
    
    
    15,962
    
    
    
    
    
    
    
    19,622Cash and cash equivalents, end of period
    
    $
    5,241
    
    
    $
    3,272
    
    
    $
    
    
    
    $
    8,513
 21




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##### Table of Contents



ITEM 2   MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 The following discussion and analysis should be read in conjunction with the Financial Statements
and related Notes thereto included elsewhere in this quarterly report on Form 10-Q . Some of the
statements in this quarterly report are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages
containing verbs such as `aims, anticipates, believes, estimates, expects, hopes, intends, plans,
predicts, projects or targets or nouns corresponding to such verbs. Forward-looking statements
also include any other passages that are primarily relevant to expected future events or that can
only be fully evaluated by events that will occur in the future. There are many risks and
uncertainties that could cause actual results to differ materially from those predicted in our
forward-looking statements, including, without limitation, those factors discussed under the
caption Risk Factors in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year
ended December 31, 2006, which was filed with the Securities and Exchange Commission on March 14,
2007. Readers are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this report. We undertake no obligation to revise any forward-looking
statements in order to reflect events or circumstances that may subsequently arise. Readers are
urged to carefully review and consider the various disclosures made in this report and in our other
reports filed with the Securities and Exchange Commission that attempt to advise interested parties
of the risks and factors that may affect our business, prospects and results of operations. As used
herein, unless the context requires otherwise, when we say we, us, our, or the Company, we
are referring to Fisher Communications, Inc. and its consolidated subsidiaries.
  Overview
    22




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##### Table of Contents



Critical Accounting Policies
  23




---



##### Table of Contents



Income taxes. Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109
  Consolidated Results of Operations
  24




---



##### Table of Contents



Six months
    
    
    
    
    
    
    
    
    
    
    Three monthsended June 30
    
    
    Variance
    
    
    ended June 30
    
    
    Variance2007
    
    
    2006
    
    
    $
    
    
    %
    
    
    2007
    
    
    2006
    
    
    $
    
    
    %(Dollars in thousands)(Unaudited)RevenueTelevision
    
    $
    51,578
    
    
    $
    48,850
    
    
    $
    2,728
    
    
    
    5.6
    %
    
    $
    26,980
    
    
    $
    25,991
    
    
    $
    989
    
    
    
    3.8
    %Radio
    
    
    18,351
    
    
    
    18,172
    
    
    
    179
    
    
    
    1.0
    %
    
    
    11,443
    
    
    
    12,081
    
    
    
    (638
    )
    
    
    -5.3
    %Fisher Plaza
    
    
    5,689
    
    
    
    4,292
    
    
    
    1,397
    
    
    
    32.5
    %
    
    
    2,914
    
    
    
    2,128
    
    
    
    786
    
    
    
    36.9
    %Corporate and eliminations
    
    
    (76
    )
    
    
    (43
    )
    
    
    (33
    )
    
    
    
    
    
    
    (38
    )
    
    
    (10
    )
    
    
    (28
    )Consolidated
    
    
    75,542
    
    
    
    71,271
    
    
    
    4,271
    
    
    
    6.0
    %
    
    
    41,299
    
    
    
    40,190
    
    
    
    1,109
    
    
    
    2.8
    %Direct Operating CostsTelevision
    
    
    20,215
    
    
    
    18,117
    
    
    
    2,098
    
    
    
    11.6
    %
    
    
    10,099
    
    
    
    9,036
    
    
    
    1,063
    
    
    
    11.8
    %Radio
    
    
    5,233
    
    
    
    5,041
    
    
    
    192
    
    
    
    3.8
    %
    
    
    2,436
    
    
    
    2,490
    
    
    
    (54
    )
    
    
    -2.2
    %Fisher Plaza
    
    
    1,671
    
    
    
    1,429
    
    
    
    242
    
    
    
    16.9
    %
    
    
    775
    
    
    
    641
    
    
    
    134
    
    
    
    20.9
    %Corporate and eliminations
    
    
    931
    
    
    
    811
    
    
    
    120
    
    
    
    14.8
    %
    
    
    465
    
    
    
    400
    
    
    
    65
    
    
    
    16.3
    %Consolidated
    
    
    28,050
    
    
    
    25,398
    
    
    
    2,652
    
    
    
    10.4
    %
    
    
    13,775
    
    
    
    12,567
    
    
    
    1,208
    
    
    
    9.6
    %Selling, general and administrative expensesTelevision
    
    
    17,224
    
    
    
    15,109
    
    
    
    2,115
    
    
    
    14.0
    %
    
    
    8,374
    
    
    
    7,410
    
    
    
    964
    
    
    
    13.0
    %Radio
    
    
    7,561
    
    
    
    7,758
    
    
    
    (197
    )
    
    
    -2.5
    %
    
    
    4,226
    
    
    
    4,215
    
    
    
    11
    
    
    
    0.3
    %Fisher Plaza
    
    
    207
    
    
    
    247
    
    
    
    (40
    )
    
    
    -16.2
    %
    
    
    80
    
    
    
    141
    
    
    
    (61
    )
    
    
    -43.3
    %Corporate and eliminations
    
    
    3,241
    
    
    
    3,336
    
    
    
    (95
    )
    
    
    -2.8
    %
    
    
    1,515
    
    
    
    1,344
    
    
    
    171
    
    
    
    12.7
    %Consolidated
    
    
    28,233
    
    
    
    26,450
    
    
    
    1,783
    
    
    
    6.7
    %
    
    
    14,195
    
    
    
    13,110
    
    
    
    1,085
    
    
    
    8.3
    %Amortization of program rightsTelevision
    
    
    4,274
    
    
    
    4,135
    
    
    
    139
    
    
    
    3.4
    %
    
    
    2,128
    
    
    
    2,066
    
    
    
    62
    
    
    
    3.0
    %Radio
    
    
    5,160
    
    
    
    5,201
    
    
    
    (41
    )
    
    
    -0.8
    %
    
    
    4,883
    
    
    
    4,999
    
    
    
    (116
    )
    
    
    -2.3
    %Consolidated
    
    
    9,434
    
    
    
    9,336
    
    
    
    98
    
    
    
    1.0
    %
    
    
    7,011
    
    
    
    7,065
    
    
    
    (54
    )
    
    
    -0.8
    %Depreciation and amortizationTelevision
    
    
    3,622
    
    
    
    2,935
    
    
    
    687
    
    
    
    23.4
    %
    
    
    1,907
    
    
    
    1,464
    
    
    
    443
    
    
    
    30.3
    %Radio
    
    
    473
    
    
    
    442
    
    
    
    31
    
    
    
    7.0
    %
    
    
    248
    
    
    
    219
    
    
    
    29
    
    
    
    13.2
    %Fisher Plaza
    
    
    1,616
    
    
    
    1,526
    
    
    
    90
    
    
    
    5.9
    %
    
    
    787
    
    
    
    766
    
    
    
    21
    
    
    
    2.7
    %Corporate and eliminations
    
    
    146
    
    
    
    124
    
    
    
    22
    
    
    
    17.7
    %
    
    
    74
    
    
    
    62
    
    
    
    12
    
    
    
    19.4
    %Consolidated
    
    
    5,857
    
    
    
    5,027
    
    
    
    830
    
    
    
    16.5
    %
    
    
    3,016
    
    
    
    2,511
    
    
    
    505
    
    
    
    20.1
    %Income (loss) from operationsTelevision
    
    
    6,243
    
    
    
    8,554
    
    
    
    (2,311
    )
    
    
    
    
    
    
    4,472
    
    
    
    6,015
    
    
    
    (1,543
    )Radio
    
    
    (76
    )
    
    
    (270
    )
    
    
    194
    
    
    
    
    
    
    
    (350
    )
    
    
    158
    
    
    
    (508
    )Fisher Plaza
    
    
    2,195
    
    
    
    1,090
    
    
    
    1,105
    
    
    
    
    
    
    
    1,272
    
    
    
    580
    
    
    
    692Corporate and eliminations
    
    
    (4,394
    )
    
    
    (4,314
    )
    
    
    (80
    )
    
    
    
    
    
    
    (2,092
    )
    
    
    (1,816
    )
    
    
    (276
    )Consolidated
    
    
    3,968
    
    
    
    5,060
    
    
    
    (1,092
    )
    
    
    
    
    
    
    3,302
    
    
    
    4,937
    
    
    
    (1,635
    )Other income, net
    
    
    2,296
    
    
    
    1,767
    
    
    
    529
    
    
    
    
    
    
    
    1,126
    
    
    
    881
    
    
    
    245Interest expense, net
    
    
    (6,904
    )
    
    
    (6,822
    )
    
    
    (82
    )
    
    
    
    
    
    
    (3,410
    )
    
    
    (3,368
    )
    
    
    (42
    )Income (loss) from continuing
operations before income taxes
    
    
    (640
    )
    
    
    5
    
    
    
    (645
    )
    
    
    
    
    
    
    1,018
    
    
    
    2,450
    
    
    
    (1,432
    )Provision (benefit) for federal and state
income taxes
    
    
    (71
    )
    
    
    
    
    
    
    (71
    )
    
    
    
    
    
    
    319
    
    
    
    658
    
    
    
    (339
    )Income (loss) from continuing operations
    
    
    (569
    )
    
    
    5
    
    
    
    (574
    )
    
    
    
    
    
    
    699
    
    
    
    1,792
    
    
    
    (1,093
    )Income from discontinued
operations, net of income taxes
    
    
    1,580
    
    
    
    562
    
    
    
    1,018
    
    
    
    
    
    
    
    1,557
    
    
    
    476
    
    
    
    1,081Net income
    
    $
    1,011
    
    
    $
    567
    
    
    $
    444
    
    
    
    
    
    
    $
    2,256
    
    
    $
    2,268
    
    
    $
    (12
    )
 25




---



##### Table of Contents



Comparison of Fiscal Six and Three-Month Periods Ended June 30, 2007 and June 30, 2006
 Revenue
     Direct operating costs
      26




---



##### Table of Contents



Selling, general and administrative expenses
     Amortization of program rights
   Depreciation and amortization
  Other income, net
  Interest expense, net
  Provision (benefit) for federal and state income taxes
  27




---



##### Table of Contents



Income from discontinued operations, net of income taxes
  Liquidity and capital resources
         28




---



##### Table of Contents



Recent Accounting Pronouncements
 The Fair Value Option for Financial Assets and Financial Liabilities 
Including an amendment to FASB Statement No. 115
 Fair Value Measurements
 29




---



##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
  Interest Rate Exposure
  Marketable Securities Exposure
  
 ITEM 4. CONTROLS AND PROCEDURES
   30




---



##### Table of Contents



PART II
 
 OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults Upon Senior Securities
  
 Item 4. Submission of Matters to a Vote of Security Holders
   Votes for
    
    Votes withheldColleen B. Brown
    
    
    5,590,317
    
    
    
    2,486,549Donald G. Graham, III
    
    
    6,084,266
    
    
    
    1,992,600Brian P. McAndrews
    
    
    5,595,641
    
    
    
    2,481,225
   Votes for
    
    Votes against
    
    Votes abstain
    
    Non votesAmendments to the Incentive Plan of 2001
    
    
    4,489,974
    
    
    
    2,600,021
    
    
    
    2,695
    
    
    
    984,176
 31




---



##### Table of Contents



Item 5. Other Information
  
 Item 6. Exhibits
  31.1
    
    Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.31.2
    
    Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.32.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 32




---



##### Table of Contents



SIGNATURES
  FISHER COMMUNICATIONS, INC.
(Registrant)Dated: August 8, 2007
    
    /s/ S. Mae Fujita Numata

S. Mae Fujita Numata
Senior Vice President
Chief Financial Officer and Corporate Secretary
 
 33




---



##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    Description31.1
    
    Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.31.2
    
    Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.32.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 34